Yet Again, Mortgage Rates Surge Higher After Fed Rate Cut
Today was not a foregone conclusion and there was no way to know ahead of time that it would end like this, but the outcome is exactly why we've gone to such lengths to warn you about the potentially paradoxical reaction to a Fed rate cut.
Too many people repeat the fallacy that mortgage rates will benefit from a Fed cut. We have several recent examples of the exact opposite happening, and now today adds another strong reminder with the average lender moving higher at the fastest pace since the day after the last Fed meeting.
Why does this happen?
It has nothing to do with the rate cut itself. As we warned, volatility would come from Fed Chair Powell's press conference. In today's case, Powell said that another rate cut in December was not a foregone conclusion. This was a
Categories
Recent Posts

Customer loyalty offers a key business metric

Florida builders file 6,127 home permits in July

Small creative shifts can help build wealth

Rates Only Slightly Higher Despite Strong Jobs Report

Average rate on a 30-year mortgage climbs to highest in 13 months

Building wealth requires a plan for earnings

Fed governor ties rate decision to inflation report

Mortgage Rates Drop to Week's Best Levels

Homebuilders turn cautious on second-half outlook

Simple habits that keep referrals coming

